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An Australian soldier killed

in Afghanistan while on his 7th

tour of duty. This is a terrible blow to our nation and

a terrible blow to an

Australian family. Out of Libya an Australian lawyer

freed after a failed mission to

defend one of the Gaddafis. We

all make mistakes, we all get a

chance to reflect on those

mistakes and I think the ICC

can give some thought to

that. Play turns fatal when an

earth bank collapses on two

boys in north Queensland. And

trading limbo is timber compen

Gunns running ot of ammow to

keep shareholders happy. Hello

and welcome to ABC News across

Australia, I'm Nicole Chettle.

The Reserve Bank is meeting

today with interest rates tip

share market: to stay on hold. On the local

The war in Afghanistan has

claimed the life of another

Australian soldier. The

40-year-old was a special

forces veteran on his 7th tour

of Afghanistan. He's the 33rd Australian soldier to be killed

in the conflict. The Prime

Minister was grim faced as she

arrived to deliver the

news. Our nation once again has

to absorb the news of a loss in

Afghanistan. We have lost

another brave Australian

soldier. This is a terrible

blow to our nation and a

terrible blow to an Australian

family. The soldier was shot in

the chest during an operation

targeting an insurgent

commander in southern

Afghanistan. He was evacuated

by helicopter to the roll 2

medical facility in Tarin Kowt.

Sadly, despite the best efforts

of all attempts to re sus Tate

the soldier were unself-. The

40-year-old's name hasn't been

released but the Chief said he

was a respected soldier who had

been fighting with the special

forces since 1995. This man was

a soldier's soldier and I know

the members of the special

operations task group will

ensure his service and

sacrifice will not be

forgotten. He's also the first

Australian soldier to be killed

in Afghanistan since October

last year. A painful reminder

that the country is still mired

in violence. Over such a period

of time although one constantly

says that one has to steel

one's self for more Fay -

fatalities. You can lull jurs -

yourself into a false sense of

security. 13 of the 16 killed

in Afghanistan have been from

the special forces. He was on

his 7th tour of Afghanistan and

the ADF is facing questions

about whether Australia's

asking too much of its elite

troops. General Hurley raised

concerns about the frequency of

tours when he first took the

job but he says in the end

soldiers choose to go back. No,

volunteers for this, really

hand managed within the unit

assess whether or not they're and we're very careful to

fit for service. But still he

says the ADF needs to keep a

sharp eye on the issue. Three

British soldiers have also been

killed in Afghanistan shot dead

by a local policeman at a

checkpoint. It's not known why

the Afghan officer turned his

gun on the men who were there

to help his unit. All three had

been at a local meeting before

the incident. One Afghan source

said there had been an argument

just before the shooting.

Despite the human casualties NATO's reaffirmed its

commitment to its long-term

strategy. Our strategy is to

gradually hand over full responsibility for the security

to the Afghans and that process

will continue and be completed

by the end of 2014. 26 NATO

soldiers have now been killed

this year at the hands of their

Afghan colleagues. Melinda

Taylor has arrived in the

Netherlands free at last after an ordeal lasting nearly a

month in Libya. The Australian

lawyer was part of an

International Criminal Court

team caught up in the internal

opolitic s of Libya while

helping prepare a defence for

son of former dictator Moammar

Gaddafi. The President of the

ICC says Ms Taylor's in good

spirits and the Foreign

Minister Bob Carr says it's a

very happy ending. More now

from ABC correspondent Lisa

Millar in The Hague. A little

tired is what those who have

seen her say but certainly in

good spirits and in good health

which is very important, that

even after a month in detention

she was looked after quite

well. That was what they said

after they saw her in Rome.

I've just been at Rotterdam

airport where she touched down

at around 1am The Hague time

and has now been reunited with

her husband and her child. The

Foreign Minister Bob Carr had

been to triply to help secure

her release, was she just a

victim of being associated with

trying to defend the wrong side

in post Gaddafi Libya? Well,

there will certainly be an

investigation into why it got

to this point and there was

certainly an international

lobbying effort that was very

intense to be able to free not

only Melinda Taylor but her 3

other colleagues. There's been

questions about the ICC and how

they have dealt with this,

whether those four should have

been in Libya in the first

place without putting a little

bit more thought into it and

certainly Bob Carr was free

with those criticisms

earlier. It might have been It

might have been safer for

Melinda if the court had nailed

down some detailed protocols

and procedures especially given

the sensitivity of the Gaddafi

name in post revolutionary

Libya before they sent their

team in. But that's something

for them to reflect on. She'd

been accused of spying, what

concessions did the

International Criminal Court

make to smooth the way for her

to be released from the

country? Well, they agreed that

they would have their own internal investigation, so

they're waiting for Lybian

authorities to hand over all of

the information they have. But

the ICC and the moment that it

really nailed this release was

when they offered the

statements of regret and also

statements of apology and the

ICC President was on hand again

today during the release and

they were the kinds of words

that he was offering to the

Lybians. Let's listen to what

he had to say. I also wish to

emphasise that in carrying out

its functions the court has no

intention of doing anything

that would undermine the

national security of Libya. The President of the International

Criminal Court there and before

that ABC correspondent Lisa

Millar in The Hague. Two boys

in north Queensland are dead

after an earth embankment

collapsed on them last night.

The children aged 12 and 14

were cousins on a school

holiday break in the town of

Ayr south of Townsville. They'd

been building a dub - cubby

house. A family member found

the pair under the rubble and attempted to dig them out

before help arrived. Paramedics arrived at the scene a short

time later but couldn't revive

the boys. Very difficult on all emergency services, police,

fire and rescue and ambulance

and we'll look after those

folks as we always do but our heart at this point in time

goes to the families who are

involved in this tragic accident. Family members

returned to the scene this

morning to collect belongings.

The Prime Minister has held

bilateral talks with the

Indonesian President. Julia

Gillard hosted Susilo Bambang

Yudhoyono at a State dinner

last night. This morning the

leaders met again for formal talks at Parliament House in

Darwin. President Yudhoyono's

indicated he would like to

boost trade between the two

countries. Ms Gillard also

discussed asylum seekers with

the President. The notorious

drug trafficker Tony Mokbel

will finally learn his fate

today. Mokbel was taken to the

Victorian Supreme Court this

morning where he is to be

sentenced on major drug

trafficking charges. The

46-year-old was facing 7

lengthy trials when he pleaded

guilty last year to running a

complex drug ring. As part of a

plea deal he's faced 3 charges.

They followed his infamous

arrest and extradition from

Greece where he fled while

partway through an earlier

trial. Prosecutors want a

29-year jail sentence for

Mokbel. The environmental

activist group claims one of

the east coast's most important

koala habitats has been damaged

to supply timber flooring to

the retail giant Harvey Norman.

The group says it's using

Harvey Norman's high provile to

push the agenda. The Bambee

State Forrest form asgreen ring

and a beautiful backdrop to the

NSW coastal city of Coffs

Harbour. But a selective

logging operation has cut deep

with some locals. Koala expert

Steve Philips say important

trees have been removed. Once

you're in an area where you

have resident koala populations

and it's almost a matter of

everything becoming sacred.Io u

have to manage the whole. He

says this is not the way to

manage such a crucial koala

habitat. This area to the best

of our knowledge is probably

one of the 3 most important

koala centres on the east coast

of Australia. Louise Morris

from lobby group Markets for

Change today released a report

alleging the timber harvested

here is ending up on the

showroom floor at Harvey

Norman. Is it ethical though

to target Harvey Norman like

this when they bought this product legitimate I will and

legally? We've been trying to

contact Harvey Norman for the past 5 months about this

research to have a discussion

with them about transitioning

out of the native forest like

this one here at Bambee. The

man at the centre of the

allegations, Gerry Harvey,

didn't want to be interviewed

but he told the ABC he thought

forest activists were trying to

use his profile to push an

agenda and that he cared deeply

about the environment. The blue

is national park, the green is

State forest. Foresters say

they manage the area carefully

and professionally and that no

koalas were hurt or killed

during logging. One thing that

really hurts is there's a

perception out there that our

staff jump out of bed in the

morning and just crave or

desire killing something.

That's not actually the

case. That I say the report

contains distortions and are

upset at the use of an image of

a decapitated koala taken 5

years ago and 20 kilometres

away. It's a shocking image and

it upsets me to see it. We

invested it at the time in

conjunction with the EPA. Our findings were that koala was

the victim of a dog attack. Loggers say this forest

is in great shape and will be

for a long time to come.

The new financial year is

already proving to be a testing

time prompting big questions

about corporate governance. The

drama around the failed bid for

the department store David

Jones has some calling for an

investigation and after 117

days in a trading halt what's

the future of the Tasmanian

timber company guns. Joining me

now is Stephen Mayne, one of

the directors at the Australian

Shareholders Association. Gunns

suspended its shares back in

March, could the company be

forced to fold for good? Well, possibly. There's very few

companies that have ever

survived more than 100 days of

voluntary suspension trying to

get away an emergency debt and

equity capital raising. So the

shares have plunged from $4 at

the peak to 16 cents. They've

already destroyed $1 billion of

value so there are genuine

questions as to whether the

stock will ever trade again and

yesterday the director said

they would be doing a massive

write down of their assets

presumably to the tune of hundreds of millions of

dollars. And what does that

mean for plans to build a new

pulp mill in Tasmania? Well I

guess there are three possible

scenarios here. One is that the

listed company Gunns'

successfully raises the money,

brings in a joint venture

partner and builds one of the

10 biggest pulp mills in the

world. The second one is that

Gunns as a listed company fails

but the liquidator or the

receiver or the company itself

sells the entitlement and all

the approvals to build this

massive pulp mill to a separate

party. So you've still got a

pulp mill but you don't have

guns which has already spent $250 million developing the

project. And the third

possibility is that that money gets written off and there is

no pulp mill because the

markets are tough, the currency is high, Australian

manufacturing costs are high

and the economics just don't

stack up for anybody to build a

massive manufacturing plant in

Tasmania which in my view would

be a real shame for Tasmania

given they're getting federal bailouts and manufacturing is

in trouble across Australia and

this would be a massive $2

billion manufacturing plant. Of

course David Jones has been in

the news, what do you make of

the failed bid for the

department store? Well, it's

one of the biggest shemozzles

that anyone's ever seen. On the

last day of the financial year

when everyone closes off their

books someone has basically

conned the board into putting

out a statement about a my Raj

private equity bid which has

sent the value of the company

up at one point on Friday

almost 20% or $200 million and

then of course the my Di Mirage disappeared. There was

nothing there, it was all bogus

websites and so-called private

equity firms that have no

credibility or Reg station and

so they abandon the bid on the first day of the financial

year, or yesterday, and the

stock crashes by pretty much

the same amount. So David Jones

should never have put out a

statement but directors are

clearly concerned about getting

sued and not maintaining their

obligations with continuous disclosure regulations and this time it was excessive

disclosure and they shouldn't

have said anything and I think

the investigation by the regulators should be pretty

vigorous on this one. Stephen

Mayne in Melbourne, thanks for

joining us. Thank you. Lunch

time figures from Canberra show

home building approvals soaring

after that 0.5% interest rate

cut in May. New home permits

jumped 27% for the month as a

number of major projects to

build units got the tick.

Economists were forecasting a

mere 5% boost. The UK banking

sector's facing a full

parliamentary inquiry. It follows revelations Barclays

Bank and probably others

manipulated the interbank

lending rate, known as LIBOR,

to artificially bolster their

balance sheets. The British

Prime Minister says the inquiry

into the rate rigging scandal

will start within days. The

outgoing chairman of Barclays,

Marcus Aegis, isn't commenting

on his resignation. Are you the

fall guy? It's tipped his scalp

will be only one of many

eventually claimed by the LIBOR

fixing scandal. The UK Prime

Minister has announced a wide-ranging banking

inquiry. But this is the right

approach because it will be a

ibl to start immediately, it will be accountable to this

house and it will get to the

truth quickly so we can make

sure this never happens

again. The committee will take

evidence under oath and report

back by January. But the Labor

Opposition says only a Leveson

style independent inquiry will

satisfy the public. We will

continue to argue for a full

and open inquiry independent of

bankers and independent of

politicians. 20 banks are

involved in setting LIBOR. RBS,

HSBC, UBS and Citigroup are

under already investigation. The public's anger at some of the things

that have happened in the banking industry is very

obvious and I think some

process, a more formal process

to address that anger and

address some of the evident failings of the banking

industry is very

sensible. Marcus Aegis says the

buck stops with him but it

hasn't taken the heat off

Barclay's chief executive. I

think it's very sad but the -

Marcus is an honourable man and

he's done the honourable thing.

I can't help thinking he's

taking the flak for Mr

Diamond. Bob Diamond's fate

will be clearer tomorrow. He

will be pressed by a panel of

MPs over how much he knew about

the market manipulation.

China's embarks on a new stage

of its economic development. It

wants to follow in Japan and

South Korea's foot steps

relying less on cheap labour

and more on the production of

high tech goods. Stephen McDonnell reports from

Guangdong province. Australia's

largest trading partner is now

looking to shift its production

model. Out with the shoes and

dodgy toys, in with the

high-tech gadgets. Mainland

schien - - China wants to

emulates the likes of Taiwan,

Korea and Japan which

transforms their entire economies producing

electronics, commuter s and

various communication devices.

TRANSLATION: We want to change

people's impressions of made in

China. We want people the think

more along the lines of created

in China. The commune TE max communications hard ware is a

company with lots of ambition.

TRANSLATION: In the field of

terminal devices, mobile

phones, in at the moment we

rank in the first 5 of world

sales. By 2015 we're confident

we can step into the first

3. Can competition from

countries like Vietnam, this

place is not the cheapest

producer on the block

anymore. With wages going up

here, China can no longer

simply rely on cheap production

to drive its economy. It's

looking to skill up its work

force and move into more

high-tech goods. At GDC in Shen

Jen there are rows and rows of

young animators and designers

learning to become the 3D movie

makers of the Faour. This

company runs training courses

as well as producing its own


TRANSLATION: Our work can be

broken into several parts. The

first is to make original films

which have a Chinese character

and style. But we also make

movies using the stories provided by foreign

clients. Yet there's no doubt

that the challenges facing

China are huge. If it wants to

seriously shift its modes of

production. It will take a good

deal of money, resources,

motivation and training to make

it a high-tech producer with a

more affluent local consumer

base. Even so, many here

believe that this country now

has no choice but to make this

shift. Let's take a check now

of the markets and here's

Michael McCarthy from CMC Markets. Michael, it's a

cautious start to the day? Yes,

it is, Nicole. We're seeing a

lot of investors and traders

remaining on the side lines and

having come through the much

anticipated euro leader summit

and the end of financial year

it looks as if the markets

might be taking a bit of a

breather today. We're seeing

selective buying but volumes

are low. Among the best

performers x financials in particular, information technology stocks are doing

well and consumer discretionary

stocks also on the leader

board. Overall though given the

positive lead we had from markets overnight we were

expecting a better performance

and while it's good we're currently holding the goods

that we gained yesterday we

would like to see the market

move on over the rest of the

trading day. And David Jones has been copping some criticism

in recent days, how is it faring? Well the market doesn't

seem to be too phased. In fact

the share price is up again

today after falling heavily

yesterday. We're seeing it

about 3% above the levels

before the bid that wasn't was

announced. So it does appear even though this bid didn't

have a lot of substance to it

it has focused attention on the

sector and David Jones is not

the only beneficiary. Although

its shares are up 2 cents

today. We're seeing buying

across the consumer

discretionary space and what

the events of last Friday may

have done is focus investors on

the value that is in the

consumer discretion ary sector. And of course the

Reserve Bank's meeting today on

interest rates, are we likely

to see a rate cut? Well, at the

moment the economists and

analysts are almost unanimous

in saying no cut today. However I'm looking at the interest

rate futures and they're suggesting there is a small

chance we could see a cut. At

the moment they're implying

around a 10 to 12% chance so

not a great chance but over the

last 12 months the markets have

been more right than the

economists so like the rest of

the market I'll be watching the

screens very closely come 2:30

today. Michael McCarthy, thank

you. Thank you. To Wall Street

and the weakest manufacturing

figures in 3 years dragged

stocks down in erm - early


The Liberal MP Sophie

Mirabella has been getting some

stick on social media sites for

her response when the national

director of the ad vockty group

Get Up collapseded on live TV

last night. Simon Sheikh was

appearing as a panel member on

the Q and A program but he

slumped over the desk and

appeared to lose

consciousness. The cost of

putting similar panels. I'm not quite sure what Simon's doing

there. Is he OK? He's not

OK. Simon is not OK. Simon

Sheikh was taken to hospital

but was quickly given the all

clear. Doctors put the collapse

down to the flu he'd been

suffering for several weeks.

Sophie Mirabella has told ABC

Radio she was taken by surprise

and didn't realise Mr Sheikh

was unwell. Americans forced

to flee the most destructive

bushfire in kol Rado's his r

have returned home to

neighbourhoods reduced to ash.

They're lucky to escape with

their lives but the loss of

their homes is hard to

barement. With almost 350

houses gone it's tough coming

home. This is my street. Our

whole cul-de-sac was

rubble. Cars lined up down the

street, skeletons of the

cars. At its height the fire

forced 30,000 people to flee.

Now they're getting their first

look at the damage. Like a

pitful pile of rocks. The

washer and dryer was down in

the hole of the basement and the brand new garage door that

I had purchased was a little

crumpled accordian. And that's

a brand new bedroom set. Had

the other one for about 40

years. The infern sorks

devoured 70 square kilometres,

much of it forest that hadn't

seen fire in more than 100

years. It was a young fire

fighter up there who also had tears in his eyes that had been

on the fire line that Tuesday

night. They had to retreat at

one point it was so horrific up

there. He said, "Sir, we did

the very best we could." With

1,500 fire fighters battling

the blaze from the air and the

ground the worst looks to be

over. The fire is continuing to

burn. We still have places that

are really hot. At the same

time we have places that we are increase containment.

Containment now is at 55% and

we're really pleased with that.

Now the threat has turned to

looters. You can get up to 24

years in prison for

that. Thousands remain

evacuated but with only 2 lives

lost it could have been so much

worse. Crews returning from

the fire line have been

welcomed as heros. I said he

should not be here. We are

blessed beyond belief. A solid

dose of perspective courtesy of

mother nature. Let's have a

quick look at other stories

making news around the world.

The drug maker Glaxo Smith

Kline has agreed to pay $3

billion and plead guilty to

improper marketing of 3 drugs.

The US Attorney-General's

Department says it will be the

largest fine ever paid by a

drug company and follows

evidence the company had been

promoting popular drugs for

unapproved uses or failing to

disclose safety information.

An Islamist militant group in

Mali says it's nearly completed

its mission to destroy all the

mausoleums in the ancient city

of Timbuktu. UNESCO has

appealed for international

support from political and

religious leaders to stop the destruction calling it a

tragedy for mankind. And two

boys have attempted to snatch

the Olympic torch as it made

its way through Coventry in

England. They managed to grab

the torch before they were

ushered away by police and the

run continued. Defending

champion Cadel Evans has retained 8th place for tonight's third stage of the

tour de France. He still lies

17 seconds behind the leader Switzerland's Fabian

Cancellara. Mark Cavendish took

out a tooigt finish to the

second stage in Belgium. The

second stage of the Tour de

France was billed as the first

real showdown amongst the

sprinters for this year's race

and it certainly didn't disappoint. There was a huge

host of big names lining up for

this one. World champion

Britain's Mark Cavendish, the

German veteran Andre gripel,

newcomer Kittel, Peter Sagan

and Matthew Goss. In the end it

was Mark Cavendish taking his 21st Tour de France stage win

and proving beyond all doubt he

most certainly can win Tour de France stages without the

assist yns of a full team to

lead him out. Much of the Sky

team is focused on helping

Bradley Wiggins in his quest

for yellow. For Matt Goss this

stage was one he was targeting

as well. Third was the best he

could manage in a hectic finale

and he was philosophical at the finish. Used a bit too much

energy before the sprint and

when Caven and gripel jump,

they're two of the most

powerful guys but we dragged

align and third place. It was

an indication of how seriously

GreenEDGE are taking this

sprint finishes at this year's

Tour de France. They've had

former sprinter Robbie McEwen

come along to do

reconnaissance. What that means

is he's writing up stage

finish, he's noting things like

wind direction, incline, what

the corners are like and feeding that information back

to the riders and here's his

assessment of what that role

entails. You can't say do this,

do that, go exactly that moment

because there's so much going

on and the guys have got to use

their own instinct and their own experience which they've

got plenty of. All I can do is

try and give them the right information, accurate

information and hopefully that

can help them. As far as the

overall standings go no changes

today. Swiss rider Fabian

Cancellara remains in the

yellow jersey. Bradley Wiggins,

the hot favourite for overall

honours is in second, and Cadel Evans is 17 seconds off the

pace in 8th position. The

Wimbledon women's singles top

seed Maria Sharapova has made a

shock 4th round exit from the tournament. The favourite after

her win last month in French

Open she bowed out in straight

sets against Sabine Lisicki.

Lisicki set up a quarter final

against Angelique Kerber

winning 4 - 6-4, 6-3. Kerber

won advanced by beating Kim

Clijsters. And Roger Federer

moved through to the last 8. To

the weather now, patchy clouds lingering over South Australia,

Tasmania, Victoria and NSW but

is only causing light showers.

Those showers are mainly

confined to Victoria that are

falling as light snow on the

Alps. A trough will spread a

cool, southerly wind change and

showers along the NSW coast. Brisk south-westerly winds will

continue to trigger isolated

light showers in southern

Victoria and Tasmania and a

large high will keep the

remainder of the country clear.

The forecasts:Cleerningz Let's

go back to the stock exchange

now for a final check of the

markets and the All Ords is up

just 3 points. Japan is adding 44:

And that's the news for now.

There's continuous news on ABC

News 24 and there's also news

online. Our next full bulletin

on ABC 1 is at 7:00 this

evening. I'm Nicole Chettle,

have a good afternoon. Closed

Captions by CSI This Program is Captioned

Live. (Applause)

Good evening. Welcome to Q&A

live from the Casula Powerhouse

arts centre in the west of

Sydney. I'm Tony Jones and

answering your questions today

Simon Sheikh, shadow Minister

for Industry and innovation

Sophie Mirabella, Minister for

Climate change Greg Combet,

'Sydney Morning Herald''s

national affairs correspondent

Lenore Taylor and political

strategist Grahame Morris.

Please welcome our panel.

Q&A's live from 9:35 Eastern

Standard Time and simulcast on

news radio. Go to our website

to send a question or use the

hash tag on the screen. We'll

go straight to the first

question in the audience and

it's from Michael Coan. The 1760s American Revolution

focused on the concept of no taxation without representation

which provided a situation where the Government

implemented tax without the

consent of its citizens. Is the

carbon tax not a product of

this notion as the Australian

public voted on a government

who said they would never

introduce a carbon tax? Greg

Combet, let's start with you

and you take a lead from Craig

Emerson if you like and sing

your answer. I'll spare

everyone that, thanks. I understand it's a very difficult issue in this debate

for people but we have to

return to some basic

principles, I think, in

addressing it. One is that

scientists are telling us that

greenhouse gas emissions are

causing climate change and when

governments accept that advice

they have a responsibility to

deal with it by putting in

place policy measures that will

reduce greenhouse gas emissions

in partnership with other

nations. In the 2007 election

both John Howard and Kevin Rudd

representing the Labor Party at